UNLV Theses, Dissertations, Professional Papers, and Capstones

11-2005

A Day in the life of a casino host A Day in the life of a casino host

Chu-Huan Liu University of Nevada, Las Vegas

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Repository Citation Repository Citation Liu, Chu-Huan, "A Day in the life of a casino host" (2005). UNLV Theses, Dissertations, Professional Papers, and Capstones. 614. http://dx.doi.org/10.34917/1752253

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A Day 1

Running head: A DAY IN THE LIFE OF A CASINO HOST

A Day in the Life of a Casino Host

Chu-Huan Liu

University of Nevada, Las Vegas

November, 2005

A Day 2

CHAPTER 1

THE PROBLEM AND ITS PURPOSE

Introduction

“The premium-play segment of casino gaming has typically been credited with producing a

disproportionate share of casino profits. In 1999, for example, premium players (often called

high rollers) represented 5% of all Las Vegas gamblers, but produced 40% of the gross gaming

win” (Lucas, Kilby & Santos, 2002, p. 65). In Lucas et al’s extensive discussions with casino

executives, they also found that the high rollers segment is still considered a source of substantial

profit. Most of these top 200 gamblers enjoy playing table games in mega-resorts on the Strip,

such as Bellagio Casino & Resort, The Wynn’s, and Venetian All Suite Hotel & Casino.

Casinos usually hire junket representatives and casino hosts to act as a liaison between casino

marketing departments and proven high-end guests. Junket representatives are usually

independent agents who bring players into a particular casino; in return, they are compensated

with commission by that casino. If these players do not spend enough time and money in

playing, the casino simply loses interest in that representative. Casino hosts are in-house

marketing employees who are fully responsible for retaining the existing good patrons and to

bring in potential new guests (Makens & Bowen, 1994).

Rom and Flavia Hendler’s (2004) article showed revenue management could be combined

with customer relationship management practices in gaming to maximize the overall property

revenue. Personal guest services, casino credit, comps, airfare reimbursements, discounts,

promotional chips, special events, shopping sprees, excellent facilities, comfortable gaming

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areas, and courteous casino employees are all good marketing tools to help casino hosts sell the

resort and to build a long-term relationship with the gamblers. As competition grows, casino

hosts must be able to understand their customers’ needs and wants, then act to further ensure

their complete satisfaction hopefully. In return, a future trip can be booked in advance.

The casino marketing host’s work has the following unique characteristics: service-oriented,

24-hour on call, and long hours. Most casinos in Las Vegas have at least one casino host on-duty

at any given time. For certain high-end guests, there is often a single host assigned to them

during their entire trip. He or she is standing by 24 hours a day to facilitate the VIP guests every

request. Most casino hosts carry either beepers or cellular phones, so their guests or hotel staff

can reach them any time. During peak seasons, such as New Years or Chinese New Years, most

casino hosts spend 12 to 16 hours in the casino to service their casino guests.

The author will also discuss the following subjects in this paper: making credit decisions,

collecting outstanding balances, making comps decisions, settling guests’ accounts, preventing

employee fraud, and dealing with guests who are self-limited. A successful casino host should

not only make their guests feel comfortable and happy, but also maximize profits by carefully

regulating company expenses on complimentaries.

Purpose of this Study

The purpose of this study is to describe the duties and responsibilities of a casino host. The

day in the life of a casino host will be presented in Chapter 3.

Research Questions

“Casino hosts have three primary duties: to identify premium players and attract them to the

casino, to negotiate with the players based on their level of play, and work out transportation,

accommodations, accommodations, food and beverage, and other services for the players; and to

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keep information on their players and maintain a relationship with them. Hosts are also

responsible for developing premium players who are already at the casino” (Makens & Bowen,

1994, p. 69). How do casino hosts find new players? What kinds of deals can casino hosts to

offer to his guests? Are these deals so attractive to keep the existing guests and lure new guests

away from other casinos? How do casino hosts perform their daily duties? How do casino hosts

establish and maintain a relationship with their guests? What are employee frauds and how can

they be prevented? Will casino hosts replace junkets representatives fully in the future? What

are self-limited patrons and how should casino hosts deal with them?

Significance of the Study

Revenues from casino table games and slot machines are considered one of the major

incomes of casino hotels or resorts on the Strip in Las Vegas. Hence, the marketing department

plays a big role in the casino business. Even though services provided by all service departments

are equally important to build a good reputation of a hotel or a resort, a group of proficient

marketing staff can help promote a hotel in order to maximize the total revenues in casino drops.

This paper is based on the diary of the author’s personal experience in hosting casino guests in a

five-star casino & resort in Las Vegas and the review of the related literature. The author

attempts to depict the daily life of a casino host, so anyone is interested in this field can have a

basic concept of how a casino host performs his or her job either on- or off-duty. The related

casino terminology and practices are discussed. A comparison between related literature and

industry practices will also be included in this study.

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Definition of Terms

Airfare Reimbursement: This is a cash award payable to the customers whose play is qualified

to their deals no matter they win or lose. Usually, customers need to play at least twelve

hours with theoretical win/loss at least ¼ of their credit limits. The reimbursement

amount depends on where the guest is from and how much his or her credit line is.

Average Bet: The average dollar amount wagered (Makens & Bowen, 1994).

Cash Complimentary: A form of monetary reward is based on the play of the customers (Makens

& Bowen, 1994). Discounts, airfare reimbursements, front money incentives and quick-

pay incentives are examples of cash complimentaries.

Cash-deposit Incentives: This is a cash award payable to the customers who deposit front money

at the cage before starting playing and whose play is qualified to their deals no matter

they win or lose. Generally speaking, customers need to play at least twelve hours with

theoretical win/loss at least ¼ of their front money. Casino hosts only offer this incentive

to players with deposit $100,000 or above.

COB: It stands for check-on-board.

Complimentary: A. K.A. “comp”, services, rooms, and F&B reward to the players based on their

play.

Corporate Exposure: The maximum credit limit a certain guest can obtain within properties.

Discounts: A form of monetary reward to the players based on percentage of their losses.

Generally speaking, discounts is offered to players with bankroll $50,000 or above.

Earning Potential (E.P.): Also known as the theoretical loss/win. The theoretical amount a

casino can win from a player (Makens & Bowen, 1994).

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Disposition: The payment method. Guests can choose to pay their IOU in 30 days, pay upon

departure, settle with casino hosts, pay outside branch offices, or allow casino cage staff

to deposit their markers in 7 days after departure.

Hold: The amount a casino expects to win from the initial buy-in (Makens & Bowen, 1994).

Hosts: Casino employees responsible for developing and maintaining premium-player business

without the use of junket representatives (Makens & Bowen, 1994).

House Advantage: The statistical advantage a casino has over a player on a particular table game.

It is usually expressed as a percentage. Among all table games, roulette has the highest

house advantage and pai gow has the lowest house advantage.

IOU: It stands for outstanding balance.

Junket Representatives: Independent agents who organize junkets and are compensated by

casinos, usually through some form of commission (Makens & Bowen, 1994).

Live Chips: Chips that can be redeemed for cash (Makens & Bowen, 1994).

Marker Limit Restriction: It defines a request from a patron verbally or in writing that their

credit limit is set at a specific level indefinitely or for a specific period of time, and not

referring to problem gambling. It also encompasses a patron’s request for revocation of

credit and/or check cashing privileges at one or more casinos (Taube, personal

communication, July 4, 2005).

Pit Manager (Pit Boss): The casino employee in charge of a gaming area such as Blackjack or

Baccarat (Makens & Bowen, 1994).

Player’s Club: Players can register to casino’s players club and earn credits if they play. The

more they play, the more credits they earn. The credits can be redeemed for meals,

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shows, hotel rooms, and other complimentary items. The credits earned are based on the

percentages of a player’s theoretical win/loss.

Player Ratings: Player ratings are composed of players’ average bets, hours played, theoretical

win/loss, actual win/loss, comps earned, cash-backs earned, credit limits, cash buy-ins,

and expenses.

Promotional chips: Not redeemable for cash, promotional chips must be played until they are lost

or until they win chips that can be redeemed. They are also called nonnegotiable chips

(Makens & Bowen, 1994). They are usually used as a marketing tool to attract players for

return trips.

Quick loss: When a player loses his or her bankroll within a short period of time (Makens &

Bowen, 1994).

Quick pay: A credit player pays his or her IOU in fewer than 14 days after the trip ends.

Quick pay incentive: An extra 1.5 to 3 percents of loss as incentives is rewarded to the players,

who lost $200,000 or more, if they agree to pay IOUs within 14 days.

Reg. 6A: The law enforces the control of the cash. Casinos must abide by the Money

Laundering Control Act of 1986, which states that they are required to identify and report

cash transactions exceeding of $10,000.

Relationship marketing: An orientation of treating all customer interactions as part of an ongoing

stream of interactions, rather than treating each customer interaction as an isolated

incident. It focuses on long-term relationships and series of transactions with the

customer (Berry, 1995).

RFB: It stands for room, food, and beverage.

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RFB comp: The expense that is incurred by the casino for providing its players with free rooms,

food and beverage, show tickets, and limo services.

Self-limited Patrons: Self-limited patrons are casino players who believe they have a gambling

problem and wish to voluntarily self-limit themselves from casino privileges, including

receiving complimentary, and agree to be removed from all check cashing and other cage

disbursements, marker privileges, direct mail marketing lists, telemarketing lists,

promotional mail lists, e-mail and player recognition programs at a certain casino or a

certain group of casinos (Taube, personal communication, July 4, 2005).

Stop holds: Remarks in a player’s account to stop him from drawing markers.

Theoretical Win/Loss: Player’s average bet X number of hands per hour X number of hours

played X house statistical advantage for that game. (Makens & Bowen, 1994)

Unusual customer actions: Floor supervisors observe unusual customer actions at table games,

and report them to higher management and marketing department. For example, guest A

draws markers $20,000 and give the chips to guest B to play with.

Whales: The elite of premium players who play for large amounts such as one million dollars

(Makens & Bowen, 1994).

Limitations

The market segment is targeted at high-end guests who have credit lines or front money

deposits in the amount of $50,000 or above. Table games marketing is specified because it is the

major and most profitable division in the casino. Sports books, kenos, and slots marketing are

not suggested to be included in this study since casinos usually have different marketing

strategies for these areas. Poker is also not mentioned since casinos simply make very little

profit or no profit from this division.

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CHAPTER 2

REVIEW OF RELATED LITERATURE

Introduction

The purpose of this chapter is to examine and integrate research findings related to the table

games casino marketing and a casino marketing host’s job responsibilities in Las Vegas. This

chapter will cover the topics, such as casino marketing tools, airfare, discounts, comp decisions,

employee ethics and fraud, a casino host’s duties, casino junket representatives, related gaming

regulations, casino credit, casino collection, and special deals for international guests. A

comparison between related literature and industry practices will also be included in this chapter.

The three primary duties of a casino host is to identify premium players and attract them to the

casino, to negotiate with the players, based on their level of play and arrange transportation,

accommodations, food and beverage, and other services for the players; and to keep information

on their players and maintain a relationship with them. Casino hosts are also responsible for

developing premium players who are already in the casino (Makens & Bowen, 1994). Casino

hosts usually work on the casino floor to greet the existing guests and to get to know the

potential players on gaming tables. To the existing guests, a casino host usually evaluates their

play history to upgrade or downgrade their trip comp status, and examines their level of play and

payment history to increase or remove their credit limits.

By explaining benefits of being players club members and providing personal guest services

to new guests, a host can establish the very first relationship with them. Generally speaking, a

casino host usually obtains contact phone number and address from a player in the casino, and at

the same time he or she also receives a host’s business card for future trip reservations.

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Whenever casino marketing has special events, blackjack or baccarat tournaments, or shopping

spree promotions, a casino host will mail invitations to the potential players and follow up with

sales phone calls to these guests to see if they can participate. If guests decide to come, they

usually will ask their host to book room, dinner, limousine, golf, tour and other reservations by

phone or by e-mail in advance.

A credit limit is usually processed and negotiated before a customer’s arrival. New guests are

also informed the disposition method before their arrivals. The stop holds will only show up for

a guest with permanent credit line if his or her bank rating is too low to support the limit, or his

or her identification is expired in the system. In these cases, the guest should either provides his

or her host or credit department staff additional bank information at least two business days

before arrivals, or shows a cage clerk his or her new identification after check-in.

Different guests are presented different types of deals in complimentary services & goods and

casino settlements depending on their level of credit lines or front money deposits and their

actual players’ ratings. Settlements are taken place in property before players’ departure if they

win money and also play up to the level. If a guest loses money and has IOU, his or her host will

inform him the payment amount and term either before or after departure. Most likely, airfare

and discount will be applied to a guest’s account after the payment is made. For domestic

guests, the payment is expected in 30 days. For international guests, guests are allowed to pay in

60 or 90 days depending on the payment agreements.

Players Clubs and Direct Marketing

Most casinos have players clubs to keep customers’ personal information and play history.

Casino hosts and floor supervisors usually invite the potential players to join players club by

explaining the benefits of being a member. A player’s card with the guest’s name and

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membership number is given to the player after the guest’s ID is scanned in the system. Before

playing, a guest should give his or her card to a floor supervisor to get his or her play rated if

their average bet is high enough, such as $ 25 or above. Players can redeem their points either in

comp rooms, food and beverage or services.

“John Romero, a consultant for the casino industry on direct response advertising and

database building and author of Casino Marketing, believes casinos are retailers- like any other

business- and have to handle their customers one-to-one. Romero also believes that direct mail

is the most powerful marketing medium casinos can used. According to Romero, the necessary

weapons that a casino must have in its marketing arsenal are: personal communication, instant

recognition, courtesy, respect, attention to detail and follow up” (Raphel, 1997, p. 54). Mr.

Romero also knows that half of all U.S. adults have been in casinos and that one out of four

actually played in the casinos. Everyone who comes into a casino wants to be somebody. They

want to be catered to and appreciated (Raphel, 1997).

Direct mailing relies on the accurate and complete guest information in Players Club

database. Casino marketing supervisors print out the mailing lists and mail out the invitations

whenever there are special events, such as concerts, fights, golf tournaments, baccarat

tournaments, or promotions, such as summer funs. Guests who received invitations can call

casino marketing coordinators or their casino hosts to book rooms and redeem their event tickets

or other comp items. For guests who request no mails, it is a casino host’s responsibilities to

inform these guests by phone calls. With the help of the effective and efficient computer

programs, casino hosts can also reach unknown decent playing customers by receiving the

printouts of guest lists from casino marketing. Harrah’s Entertainment, the largest gaming group

in the world, is a good example. “ Harrah’s Entertainment has focused on relationship marketing

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and customizing its interactions with customers. So when it came time to optimize marketing

efforts to its most valuable customers, Harrah’s understood the need to integrate relationship

building with its business intelligence to drive additional visits to revenue. Harrah’s has

approximately 300 casino hosts responsible for servicing the top 100,000 VIP customers, who

account for the majority of its revenue. With the help of the Blue Martini Software, a Java-based

application that allows realtime access to customer information, Harrah’s also was able to

establish more transparency and accountability within its VIP initiatives. Previously, the

entertainment marketer was dependent on the hosts self: prioritizing their customer outreach

efforts, which often resulted in repeated calls to the same loyal customers”(Cherkassky, 2005, p.

21).

Casino Credits, Front Money Deposits and Check Cashing Privileges

Casino credit is also a powerful marketing tool for casinos. For guests, they do not need to

bring a lot of cash with them from home, and they usually can pay in 30 days after they establish

play with the casino. Guests, who request casino credit, can either contact credit department

staff or their own casino hosts to process credit limits. The complete credit application includes

name, residential address and phone number, date of birth, social security number, business

name, address and phone number, bank name and address, bank account number, credit amount

requested, and signature. A complete credit application is sent to credit department for central

request and bank check.

Central Credit Incorporated is an information service company based in Las Vegas, Nevada.

The service provides its subscribers with a gaming history of most credit customers who have

credit lines in the past. This service enables all subscribing casinos to trade information with

each other. This includes some New Jersey, Las Vegas, Reno, Tahoe, Caribbean Clubs, and

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some London clubs (Ritto, 2003). From the central report, casino hosts and credit staff can find

out if a guest has current balances in other clubs, derogatory information, check-in-transits,

returned checks, or slow payment history. In additions, marker limits in other clubs and high &

low play actions can also be found on the central report.

If an applicant has limited or no gaming experiences, a casino credit clerk also runs his or her

credit bureau report. A credit bureau report is an additional way to verify a customer’s payment

history. The report contains bank loans, mortgages and credit cards. In other words, it contains

a customer’s consumer debts and how they are handled. There are four different credit reports

available. They are Experian, Equifax, Trans Union and Canada. The most commonly used

credit bureau reports are Experian (Ritto, 2003).

A credit manager or a casino host decides if credit requested is granted to an applicant after

reviewing his or her central report and bank rating(s). The reason to check guest’s bank rating is

to make sure the applicant has enough money in his or her bank account to cover the credit limit

requested. A letter will be sent to the applicant to inform him or her if the credit limit is

approved or not. Moreover, the payment method is also included in the letter. The cage usually

obtains a COB from a new credit guest upon arrival. The COB is returned to the guest before

departure if he or she does not owe any markers. A COB guest can choose to pay cash to get

COB back or to ask a cage clerk to deposit his COB to clear his or her IOU. Credit decisions are

to be made in the best interest of the company and the customer. The decision is to be made with

the absolute belief that the markers issued can and will, in fact, be repaid (Ritto, 2003).

Most casinos do not grant casino credits to international guests. Large casino groups, which

welcome international high profile players, usually have overseas branch offices to market their

properties. Branch office marketing staff is responsible for finding new credit guests and

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collecting outstanding balances after trips end. Domestic guests usually can have permanent

credit lines set-up. For international guests, temporary credit lines are set up since the credit

department relies heavily on branch office staff to check patrons’ financial background. Those,

who decide to come, usually contact branch office staff to book rooms and negotiate their credit

limits and deals. Branch office staff will check their bank ratings and update credit managers

and in-house hosts guests’ financial situations. International deals will be discussed in the

settlement session.

Front money deposit is for guests who do not want to have casino credit limits, or who are not

able to get credit limits. Guests can wire funds, deposit cashier checks, traveler’s checks, or cash

as their front money. However, personal checks are not acceptable as a customer deposit. As a

bonus, front money guests receive 1.5% to 3% front money commission if they play qualified in

addition to airfare and discount. The details will be discussed in settlement session.

Known patrons usually have check cashing privileges at the cage. Many casinos use global

check cashing systems instead to lower the risk. The cashing amount varies from $500 to

$20,000 depending on individual casino’s policies.

Casino Collections

The casino collection department is responsible for collecting credit guests’ outstanding

balances. The collection process differs from one another depending on guests’ disposition

codes. There are several disposition methods, such as markers deposited in seven days if no

immediate payments, payment to outside offices, statement sent to customer one to two weeks

after trip ends and payment expected in thirty days, markers deposited in fifteen days with no

statement, markers deposited in thirty days with no statement, or handled with collection

department or casino hosts (Ritto, 2003).

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The collection department usually produces a monthly summary report and a monthly aging

report to casino hosts and branch office executives. Collection meetings also are held to discuss

past due accounts over 90 days every three months. Generally speaking, casino hosts contact

their guests for collection if they approved the credit limits. Collection department clerks and

managers help to collect guests’ balances if credit managers approved the credit limits. Branch

office employees are responsible for collecting guests’ IOU in their region or country. If there

are no special deals involved, established domestic guests are allowed to pay in 30 days and

international guest’s pay period can be up to 90 days.

Cash payments and travelers checks will clear a customer’s account immediately. Cashiers

checks totaling under $100,000 from a patron with an established relationship and a known bank

will be considered cash and clear the customer’s account right away even if verification can not

be performed immediately. Money orders will only be accepted after bank verification and

proper authorization from a credit executive. Personal checks are also accepted as a payment

type. However, a guest’s account will only be cleared after the check given is cleared with the

bank (Ritto, 2003).

It is very common for a domestic casino host to visit a guest to collect money. Overseas

branch office staff usually helps to collect IOUs from guests in that region. International hosts

also have collection trips overseas to collect IOUs from guests with whom they have good

relationships. In other cases, guests refuse to make payments. Generally speaking, an

international host would visit a guest for payment with a branch office staff. He or she usually

does not bring the fund collected back to the United States. Branch office employees would fill

out and file all the related paperwork; such as CTRC-N, Cash Action Control Log, receipt to

guests, and transmittals. If a casino host travels to visit a guest for payment, the collection

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amount is usually over $100,000. In most casinos in Las Vegas, the collection department can

write off 3% total IOUs as bad debts annually.

Regulation 6A

Regulation 6A is a Nevada State regulation which all Nevada casinos must follow. This

regulation is similar to Title 31 of the United States Department of Treasury’s Bank Secrecy Act,

under which all businesses must report cash transactions over $10,000. Transactions not

involving cash, such as credit play, payment of markers with checks, depositing checks in the

casino cage against which to play, etc., are not affected by this regulation and do not require that

a report be made. A reportable cash transaction is any single cash transaction in excess of

$10,000 (foreign cash equivalent to U.S. $10,000) or multiple cash transactions within a 24-hour

period totaling in excess of $10,000 (Regulation Notice, 2000). When a patron conducts a cash

transaction in excess of $3,000 or foreign equivalent and less than $10,001, an entry on the

Multiple Transaction Log or Cash Action Control Log is completed. When a patron conducts a

cash transaction in excess of $10,000 or foreign equivalent, an entry on the Multiple Transaction

Log or Cash Action Control Log and a Currency Transaction Report Casino-Nevada is

completed during the 24-hour period. The examples of reportable cash transactions in excess of

$10,000 within a 24-hour period are, purchase of chips with cash, money plays bets in cash,

payments of markers with cash, cash deposits made with and verified by casino cage cashiers,

and cashing of checks for cash (Regulation Notice, 2000). In order to comply with the

regulation, casinos request the following information prior to completing a transaction: official

government identity credential (such as driver’s license or passport), residential address, birth

date, social security number, and identification number and expiration date. If a guest refuses to

provide the required information, casino staff will be prohibited from completing the transaction

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(Regulation Notice, 2000). They become “barred patrons” who enter into cash transaction in

excess of $10,000 without having complete identification. They can no longer play in gaming

area unless they provide the required Regulation 6A information (Taube, 2005).

Casino employees can enter into a reportable transaction without reviewing a physical

identification if the guest is a known patron. A known patron is a player whose identification is

not expired, has been verified in the last three years, and is scanned in the computer system.

However, if the identification is expired in the system, the patron needs to present an updated

identification to a cage clerk before entering into a reportable transaction. The new identification

will be input to the computer system (Taube, 2005).

An agent is another individual conducting transactions on behalf of a patron. An agent is

defined as a relative, a friend, or an associate of the patron. When an agent conducts a transaction

on behalf of a customer, he or she must show his or her identification, regardless of the amount.

If a transaction exceeds $10,000, the patron’s identification must be reviewed, too (Taube, 2005).

The absolutely prohibited transactions are cash for cash exchange in excess of $3,000 or foreign

equivalent, issuing checks for cash in excess of $3,000 or foreign equivalent, and wire transfer of

cash in excess of $3,000 or foreign equivalent (Taube, 2005).

Front money deposits, front money refunds, and payment of markers are the most common

transaction types handled by casino hosts. For front money deposit under $10,000 in cash, cage

clerk requires to log the breakdown the type of currency and denomination received on a Multi-

Property Receipt and complete a Cash Action Control Log. For front money deposit over

$10,000 in cash, cage clerk verifies if the patron is a known patron or obtains new identification

first. He or she also logs the breakdown the type of currency and denomination received on a

Multi-Property Receipt, complete a Cash Action Control Log, and Currency Transaction Report

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Casino-Nevada. When the guest who deposited money in cash at the casino cage is ready to

leave, a cage clerk is required to return the leftover deposit in the same denomination and

currency type. Once the determination has been made on how the funds will be returned, a cage

clerk notes the breakdown and denomination returned on a Multi-Property Receipt and Cash

Action Control Log. If the amount of the refund is over $10,000, a Currency Transaction Report

Casino-Nevada is also filled out. The winnings can be distributed in anyway the guest wishes. It

could be by check, wire transfer, cash, or combinations of the above (Taube, 2005).

If a patron would like to make payment in cash, the same rules apply. A Cash Action

Control Log is completed if the marker payment amount is between $3,000 to $10,000. Over

$10,000, a Currency Transaction Report Casino-Nevada is also completed during the 24-hour

period.

A casino host must be very careful in answering any guest’s questions regarding cash

transactions. Giving guests advice to avoid the reportable transactions is illegal. If an employee

is found circumventing Regulation 6A on behalf of a patron, fines and criminal penalties may be

imposed on the company and individual involved. He or she may be subject to disciplinary

action up to termination. The best way is to hand regulation notice brochures to guests. The

brochures may be in several languages, such as English, Chinese, Japanese, and Spanish

available at the casino cages and pits. These brochures are also available in branch offices.

The main purpose of Regulation 6A is to prevent money launderers using casinos to conceal

their illegal profits or to move these funds beyond law enforcement’s reach. If the following

situations occur, suspicious activity reports may be filed and submitted to the U.S. Department of

Treasury Financial Crimes Enforcement Network.

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A. A guest is trying to avoid or prevent the filing of a Currency Transaction Report for

Casino.

B. The transaction has no business or apparent lawful purpose.

C. The transaction involves the use of the casino to facilitate criminal activity.

Casino Junket Reps

“All-expense-paid trips for gamblers are part of the marketing strategy of casinos throughout

the world and junket reps act as the liaison between casino marketing departments and proven

premium players. The primary function of a junket rep is to bring known gamblers, including

premium players to a casino. If those players do not spend enough money, the casino loses

interest in the rep. Therefore, a good client list is a junket rep’s primary asset. Junket reps do

much the same job as meeting planners. They arrange accommodations, food, beverages, side

excursions, entertainment, and other recreation. They travel with their clients to attend to their

needs and serve as intermediaries if disputes arise between the hotel or casino and the player”

(Makens & Bowen, 1994, p. 63-64). Most casinos on the Strip still rely on junket reps to bring

in potential players. Junket reps usually come with their guests to the property, and take requests

of their needs and wants. Then they pass over the requests to in-house casino hosts. Casino

hosts tell the junket reps what are fulfilled and what cannot be done according to guests’ level of

play and hotel policies. Summarily, junket reps do the same job as casino hosts: to bring in and

serve guests.

A profit and loss statement is prepared for each of the casino’s junket reps. This compilation

allowed management to assess each junket rep’s performance (Thompson, 1999). Casino

management decides to extend a junket rep’s contract annually depending on his or her

performance. Some casinos encourage their in-house casino hosts to get to know and establish

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relationships with junket reps’ guests in case the company ends junket reps’ contracts in the

future.

“Before becoming junket reps in the United States, applicants must complete a detailed

personal and business history for the applicable state governing agency (e.g., State Gaming

Commission). The State Gaming Control Board of Nevada requires a fingerprint check and

detailed information including military record and criminal arrests” (Makens & Bowen, 1994). In

Las Vegas, the license renewal is required annually. Casinos are cautious in dealing with new

junket rep, since an unethical rep can cause problems. For example, a junket rep might loan

money to his or her player but also apply casino credit for the same player. When it comes time

to pay, the player is pressured into paying the rep first since the rep has better connections and

relationships to the player than does the casino. The casino is left with a slow pay or a bad debt

(Makens & Bowen, 1994).

“Junket reps work as the exclusive agents of a particular casino. They rely on promotions,

such as free show tickets, rooms, and transportation to encourage gamblers to visit the casino. In

return, junket reps are paid a commission based on the volume of gambling activity they

generate. Most junket reps covered their own overhead out of their commissions” (Thompson,

1999, p. 61). “Junket reps are compensated through several methods: flat fee, percentage of

front money, commission on dead chips, commission on live chips, compensation on number of

turns, percentage of player’s loss or percentage of casino’s theoretical win” (Makens & Bowen,

1994, p. 67). In most Las Vegas casinos, there are two kinds of junket reps. One is compensated

as a regular employee, that is, through a combination of salary, bonus and benefits. They are

usually working in branch offices and they accompany their patrons to Las Vegas if necessary.

However, branch offices reimburse their expenses incurred. They are not different from other

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branch office employees, except they have junket licenses and contracts with the company. The

other is paid a commission based on the volume of gambling activity they generate. The

commission is based on 2 to 3 % of a guest’s credit limit, or front money deposit, or combination

of credit limit and front money deposit depending on the agreements between junket reps and

casino. Absolutely, a junket rep’s guest must play more than 12 hours and achieves certain

theoretical win/loss.

Makens & Bowen (1994) found that some casino operators view junket business as

unprofitable or marginally profitable and they believe that junket business is not needed in peak

seasons and on weekends. Junket reps are under pressure. Those who continually upgrade their

marketing and managing skills and consistently supply casinos with highly qualified, profitable

premium players should continue to be view as important partners (Makens & Bowen). Many

casinos on the Strip still continue to work with independent junket reps to bring in premium

players. However, they also rely heavily on in-house casino hosts to do the same job.

Player Ratings

“The rating is simply an attempt to estimate the amount of money any given premium player is

likely to lose during a visit to the casino” (Makens & Bowen, 1994, p. 65). A player rating

consists of average bet, hours played, theoretical win/loss, actual win/loss, credit used, and cash

buy-ins. Each casino makes its own calculation of theoretical win/loss using the similar equation.

Theoretical win/loss = player’s average bet X hands per hour X hours played X house advantage.

A guest starts a new player rating each trip. The player ratings are very important for the

following reasons.

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A. Theoretical win is a negotiating measure to be used between the casino and junket reps

and is designed to allow reps to earn commissions on all the premium players they bring

to casinos, not just the losers.

B. Casino hosts make comp, airfare, discount, front money incentive decisions based on a

guest’s hours played, theoretical win/loss and actual win/loss, credit limit, and amount of

front money deposited.

C. It is an encouragement for new players to join players club and get rated. By getting

rated, they can redeem their points. The comp dollars are usually 40 to 50% of their

theoretical win/loss, which can be redeemed to free rooms, F&B, show tickets, or limo

services.

D. Casino hosts can develop existing players based on their past play history and payment

record. A casino host can present a better deal to a guest by offering better room types

and increasing his or her credit limit. In return, a patron is expected to generate better

theoretical win/loss by increasing hours played and average bet.

Settlements--- Comps, Airfares, Discounts and Front Money Commission

Before a customer checks out, he or she usually looks for a casino host to settle the account if

he or she is a credit or front money player. A player’s rating and comp expense play a major role

in settling an account. The standard rule is that if comp expense is over 40% or 50% of

theoretical win/loss depending on a casino’s policy, no airfare is given. Airfare is issued if a

credit or front money guest plays qualified to his credit or front money level regardless of a win

or loss. That means, he or she plays at least 12 hours and theoretical win/loss reaches one

quarters of the credit limit, front money deposit, or the combination of both.

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A domestic guest usually gets the face value of the ticket price if his or her airfare comp

guideline is over the cost of the ticket. If the airfare comp guideline is lower than the cost of the

ticket, then airfare may only be partially reimbursed. Exceptions happen, especially guests are

high-end or frequent mid-end. International guests will receive the fixed amount of

reimbursements depending on where they are from and how much their credit limits or front

money are as long as they play more than 12 hours the same trip and theoretical win/loss reaches

one quarter of their marker limits, front money deposits, or the combination of both. Most

casinos offer casino hosts an airfare reimbursement guidelines table. The airfare dollar amount

is easily found by putting in guest’s credit limit and origin. Airfare is an incentive to encourage

out-of-state and international guests to come to play in Las Vegas. Casino hosts do not offer Las

Vegas residents any airfare unless they lose a substantial amount of money.

Front money commission is an incentive to encourage guests to bring in their own money to

play instead of play on credit. Guests can wire the fund to cage, deposit cash, traveler’s check,

or cashier checks at the cage upon arrival. Large casinos offer 1.5% cash-back to qualified

guests who deposit over $100,000 but less than $300,000, 3% cash-back to qualified guests who

deposit over $300,000. Junket representative’s guests are not entitled to receive front money

commission, since the commission is paid to their junket representative.

“The recent building boom on the Las Vegas Strip has intensified the competition for

premium players. That increased competition, in turn, has led to expanded play incentives,

chiefly comprising discounts on player losses” (Lucas, Kilby & Santos, 2002, p. 65). In Lucas et

al found that 12 major Las Vegas Strip properties actively offer discounts to premium players.

Atlantic City casinos also employ discounting practices liberally. Discounting is most often

made available to the baccarat players, which comprises mostly international high rollers even

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though discounting player losses is a practice that no executive would want to advertise, as it

clearly reduces cash flows.

Until now, most casinos in Las Vegas only offer discounts to international guests who lose

more than $50,000 in one trip. If a guest loses over $50,000 but less than $100,000, 5% of the

actual loss is reimbursed on top of comp goods, airfare and front money commission. If a guest

loses over $100,000 but less than $500,000, 10% of the actual loss is given back. For premium

guests with $500,000 and above credit limits, they usually negotiate with casinos about their

special deals in airfare, discount, front money commission, and air charters before their arrivals.

Unusual Customer Actions and Rating Variances

The examples of unusual customer actions are hiding chips from floor supervisors, signing

markers but giving chips to friends, and jumping tables without showing chips on hands. The

floor supervisors have the choice to file an unusual customer actions report or not. The reports

are sent to table games office and casino marketing. The guest’s casino host usually will receive

one copy of the report as well. These reports are very helpful especially when a guest states a

rating variance, his or her casino host can determine whether to request a rating variance

investigation with pit boss or not.

The customer’s rating consists of average bet, theoretical win/loss, hours played, and actual

win/loss. A floor person usually has two to six tables to watch depending on the types and

betting limits of the games. It is impossible to record all guests’ average bets and actual win/loss

with 100% accuracy. Rating variance is the difference between actual win/loss and rated

win/loss. If a guest does not show his or her players card to a floor supervisor each time before

playing, he or she might not get all the ratings. In this case, nobody can help. When tables are

busy, chances of recording less or more actual win/loss might happen.

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A casino host will request a rating variance investigation with pit boss according to this

player’s past playing pattern and history and if the loss is over $50,000. The player can decide to

settle before or after the investigation. He or she usually will wait to settle after the investigation

since a discount is involved. The investigation usually takes 3 to 5 days. In approximately

eighty percent of the cases, the ratings can be changed.

Casino Marketing tools, Special Events, and Amenities

Due to the increase competition among casinos, most casinos try to offer the best facilities

and amenities to their existing guests and potential guests. “In a competitive environment,

successful casino destinations will have to provide more than mere availability. A study

investigates the relationship between use of casino amenities, such as food service and

entertainment, and total casino spending. Results indicate that users of casino amenities spend

substantially more money than do nonusers of these amenities” (Wesley, 1996, p. 58). Guests

have more choices now in casinos. They would like to stay in casinos offering good restaurants,

shows, suites, spa and salon, pools & cabanas, room amenities, limo services, casino ambience,

and courteous employees. Special events, such as fights, shopping sprees, concerts, baccarat or

blackjack tournaments with high prizes, Christmas, New Year, Chinese New Year, or Super

Bowl parties are also great promotional tools for casino hosts. Casino hosts send out invitations

to their guests and call to follow up the future reservations. In order to promote the events,

casino hosts have more chances to contact their guests to build up stronger bonds. The more a

casino can offer both in facilities and services to its guests, the easier for casino hosts to promote

a property.

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The large casinos usually have a Special Events department to book shows and arrange parties.

The fact sheet of an event is usually e-mailed out to Front Desk, VIP Services, Casino

Marketing, Concierge, and both slot and table games casino hosts.

Employee Fraud in the Casino and Gaming Industry

Casinos rely heavily on complimentary services and goods to attract and retain their best

customers. The more customers play, the more points they earn. Points can be redeemed for

complimentary goods, services, and sometimes cash, such as airfare and cash-back on slot play.

“On the casino floor one of the most common areas of comp abuse involves play ratings. A

casino supervisor can miscalculate the theoretical win by overstating a customer’s length of play

or average bet” (Rudloff, 1999, p. 46). Overstated theoretical win/loss will increase the value of

comps to be awarded. Players might offer cash gratuities or gifts to entice casino supervisor into

embellishing their rated play. In some cases, coworkers, such as casino hosts or junket

representatives, can also persuade casino supervisors to overstate rated play, since casino hosts

might be bribed by the guests, or junket representatives usually receive commissions from

casinos based on players’ theoretical win/loss. Some casino hosts will use one guest’s comp

earned to favor the other guest in forms of free show, dinner, or rooms. This should also be

avoided. The worse situation is casino host selling comp goods to friends or guests with

discount rates. “ Statistics compiled by Nevada Gaming Commission indicate that during the

period from 1999 to 2000, just over one third of those arrested for theft or cheating in casinos

were the casino’s own staff members. Whether driven by drug or alcohol abuse, a lifestyle that

exceeds income, or high personal debt, casino employees may simply rationalize their actions

because of greed, need or revenge” (Marden & Edwards, 2005, p. 21).

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“Promotional and marketing programs often leave casinos wide open to the risk of fraud.

Casinos often will spend huge amounts of money to entice new customers into their facilities and

keep current patrons coming back. For example, the Venetian Casino agreed to pay $1 million in

fines and investigation costs to settle a first-of-its-kind list of complaints that the resort had fixed

promotional contests to favor specific high rollers. The first count involved Venetian employees

rigging a promotion to give a Mercedes-Benz to an Asian high roller” (Marden & Edwards,

2005, p. 24). Two casino executives in Venetian were attempting to make the gambler happier

after he lost $5 million. State Gaming Control Board Chairman, Dennis Neilander said that when

the violations came to light in early 2002, regulators found out other casinos were about to

initiate similar programs to rig contests, all of which have been subsequently stopped (Marden &

Edwards, 2005).

Other frauds consist of restaurant servers cheating on comp checks, collusion at gaming tables

between dealers and players, or casinos failing to abide by the Money Laundering Control Act of

1986. The gaming industry has always faced the challenge of detecting fraud schemes by relying

heavily on observation and surveillance. However, casinos should educate their employees to

change a corrupt and unethical business culture in the organization (Marden & Edwards, 2005).

Compulsive Gaming and Self-limit Patrons

Compulsive gambling is an emotional illness recognized by the American Psychiatric

Association. Identified by the American Psychiatric Association as “Pathological Gambling,” it

is an impulse control disorder, which causes the same kinds of negative consequences as drug or

alcohol addition. It is estimated that compulsive gambling affects two to five percent of adults

who gamble. It can also affect men and women of any age, race or religion, regardless of their

financial or social status (Nevada Council on Problem Gambling, 2000).

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“A logistic regression analysis found that, as compared with problem gamblers denying any

alcohol use problems, those reporting past or current alcohol use problems were more likely to

be male and more frequently acknowledged problems with more forms of gambling, suicide

attempts related to gambling, arrests secondary to gambling, daily tobacco use, drug use

problems, prior substance abuse treatment, and family histories positive for alcohol and drug use

problems. The findings highlight the strong relationship between alcohol use problems and other

substance use problems, and suggest that problem gamblers with as compared with those without

alcohol use problems demonstrate greater problems in multiple areas (arrest, attempted suicide)

linked by impaired impulse control” (Potenza, Steinberg & Wu, 2005, p. 233). “Compulsive

gamblers, drinkers and drug users have high underlying levels of negative emotionality, a

syndrome that includes nervousness, anger and a tendency to worry and feel victimized”

(Kluger, 2005, p. 53). As the stress increases, compulsive gamblers find that they must seek

relief through even more gambling. The result is a progressive financial and emotional

deterioration, which can destroy both gamblers themselves and their family.

A patron can request to voluntarily self-limit his or her access to casino privileges such as

check cashing privileges, credit requests, receiving direct mail materials, and participating in

player recognition programs by completing a “Patron’s Request to Self-Limit Access” form

available at the casino cage. A self-limited patron will not receive any promotional mails and

will not be able to get any complimentary rooms, F&B, and services. They can play cash, but

they will not be rated and their credit limits are frozen. A self-limited patron can only release the

self-limited status at least one year after filling out the “Patron’s Request to Self-Limit Access”

form by sending a letter with public notary signature to casino’s corporate legal department.

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Guests can also choose to limit their use of markers. Marker limit restriction defines a request

from a patron verbally or in writing that his or her marker limit is set at a specific level

indefinitely or for a specific period of time, and not referring to problem gambling (D. Taube,

personal communication, July 4, 2005). For example, a player has $50,000 credit limit, but

request that he only be allowed to play up to $20,000 for his upcoming trips or until he notifies

the credit managers either verbally or in writing to make any changes. Guests who request to

limit their use of credit continue to maintain casino privileges. These guests are not considered

compulsive gamblers.

Resources are available to treat compulsive gambling and to provide support to the

individuals and families being affected by compulsive gambling in Las Vegas. Gamblers

Anonymous is a 12-step support group for the compulsive gambler. Many have found the

support and suggestions necessary to stop gambling and live healthy and happy lives. Gam-

Anon is a 12-step support group for the spouse, family, and friends of the compulsive gambler,

who might need help to cope with the emotional and financial stress associated with this

disorder. Professional counseling is also available. Trained therapists and addiction counselors

can help a compulsive gambler to understand this addiction and develop new coping skills to

deal with the stress of life (Nevada Council on Problem Gambling, 2000).

Brochures about compulsive gambling are available at the cage, players’ club desk, and

casino pits. The brochures provide important information for players who search for help.

Gamblers Helpline is 24 hours a day and 7 days a week.

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Branch Offices

Most casino groups have branch offices in other big cities, such as Houston and New York.

Casinos who welcome international players also have branch offices or junket representatives

overseas, such as Taiwan, Singapore, Hong Kong, and the United Kingdom. Before opening a

branch office, a demographic research and a feasibility study are done and evaluated. In most

European countries, individual junket representative plays a big role in bringing customers and

collecting their outstanding balances since there are no branch offices over there. In Asia,

branch office salespeople are responsible for searching for new potential guests. Branch office

employees have the following liaison responsibilities.

A. Keep in touch with existing patrons in the region. Update guests’ financial stability to in-

house casino executives.

B. Act as liaison officers between guests and in-house casino hosts. Send guests’ room,

show, restaurant, transportation and other requests by fax to property. Communicate with

guest’s needs and wants with in-house casino hosts.

C. Explain casino comp, credit, and collection policies to guests and negotiate credit limits

and payment terms with premium guests.

D. Collect C.O.B. if necessary and provide patrons’ bank reports to credit managers and in-

house casino hosts. Patrons’ business information, bank information, and account ratings

should also be included on bank reports.

E. Collect IOU from a guest when the payment is due.

F. Prepare a collection report of that region to property monthly.

G. File the necessary Reg. 6A documents daily.

H. Accompany “whales” to the property and provide guest services.

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I. Arrange annual golf tournament and/or annual promotional party.

Collection department clerks and mangers collect most domestic customers’ IOUs.

International hosts depend heavily on branch office staff to help collection overseas.

International hosts usually attend the annual parties held in overseas branch offices in October to

promote Christmas, New Year, Chinese New Year, and Super Bowl weekend.

Customer Relationship Management

“Customer relationship management (CRM) is used in casinos to identify individual

preferences, demographics, psychographic profiles and other measures to predict behavior and

customize marketing efforts. As a casino executive stated, intelligence allows us to determine

the destination, dining and gaming choices of our customers. Using this insight, we are able to

build complimentary and special-offer programs that are customized to the individual customers.

Customer relationship management allows a customer’s value to be determined and resources to

be allocated effectively” (Hendler & Hendler, 2004, p. 73). Current CRM systems track the play

of individual patrons using Players’ Club Cards. Casino hosts usually utilize the CRM’s past

player’s ratings and trip itineraries as reference to book future trips. This is a guideline to

determine how much each customer is eligible for in complimentary rooms, F&B, tickets, gifts,

discount, etc. As a casino host gets to know his or her guests more, he or she can create more

comfortable trip experiences to guests. In general, high-end and premium customers receive

highly personalized services and individualized offers, which may be shopping sprees,

personalized jet transportation, and luxurious suites with personal butlers. On the other hand,

mid and low-level customers usually receive standard offers, and do not have much personal

attention (Hendler & Hendler, 2004). Casino hosts usually help all the guests who need services

and assistance. However, the priority service group would be premium guests who are willing to

A Day 32

wage thousands a hand. Mid and low-level customers get more personal services by calling

Casino Marketing Coordinators, VIP Services Representatives, or Concierges. Sometimes, a

casino host is assigned to a high-end guest 24 hours a day during his or her entire trip to provide

better services.

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CHAPTER 3

A DAY IN THE LIFE OF A CASINO HOST

Introduction

Casinos, as special entertainment providers, can benefit from loyal customers. However,

casinos face a singular challenge in this realm different than in non-gaming properties. The

challenge is greater because guests are usually losing money in the casinos. In the high-end

players market, casino management makes every possible move to improve customer services

and its facilities. A casino host’s job is to establish relationship with guests and bring the total

satisfaction to their guest’s trip experience even if they might lose substantial amount of money.

Better servicing players and providing a better player experience requires a lot of personal

attention, respect, patience, courtesy, and attention to details.

This chapter is based on my personal experiences working as a Far East Casino Marketing

host in a major hotel in Las Vegas. The first part discusses my daily duties. The second part

covers monthly routine work. The final part describes a guest’s trip experience in Las Vegas.

Daily Responsibilities

Just like floor supervisors or cage clerks, casino hosts also have shift changes. The off-duty

host passes over guests’ important information to the on-duty host. The on-duty host will follow

up unfinished business from the previous shift. After the shift change, a host usually checks his

or her e-mails, voice messages and in-coming mails. According to customers’ requests, a casino

host puts in all kind of reservations, processes credit requests, retrieves paid markers …etc. A

casino host will follow up with phone calls or e-mails after all the arrangements are done.

A Day 34

The next thing is checking the arrival lists to make sure all the room reservations are correct

both in room types and comp status, pre-assign suites with front desk for high-ends guests, and

inform in-room amenity department to send amenities in the morning. Moreover, limo

reservations, such as airport pick-ups, are re-confirmed with a limo dispatcher over the phone.

Also, the arrivals’ credit limits are doubled checked in the system to make sure they are ready

for the guests. If not, his or her host must find out what the problem is and try to contact guests

to obtain the required information or ID. Casino hosts also make credit decisions when guests

lose their credit limits and request to increase the credit lines during their trip. Casino hosts

usually will consider the following factors before increasing the limit: bank ratings, past player’s

ratings, payment history, employment, and personal knowledge about the guest’s financial

background. According to credit policy, the increase should not exceed 25 % of the original

credit limit. However, exceptions also occur especially when the guest has strong financial

background and payment history is perfect.

Faxes from the branch offices should also be taken care the same day. A host looks through

the requests and communicates with branch office staff if necessary. Generally speaking, a host

should reply to branch offices with reservation confirmation codes the next day. Moreover, in-

house hosts usually produce or provide a weekly action report and a monthly collection report

for branch office employees.

The graveyard hosts will greet guests, who will play golf that day at the front door to make

sure golf clubs are all taken out and limos are punctual. Return trips are arranged with limo

dispatch at the same time. Breakfast time-orders are also arranged with in-room dining in early

morning. They also pre-block suites with casino services representatives and make sure floral

arrangements and in-room amenities are sent to the pre-assigned suites.

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The day shift hosts usually help to check guests’ wire transfers with cage. Front money

should be posted in guests’ accounts before arrival. Payments should be posted against IOU as

soon as possible. Paid markers are sent to guests by collection department unless there are

special instructions. If wire transfers are not received by the cage, guests are notified and asked

to contact their bank for wire transfer receipts by their hosts. Front money deposited in outside

offices is refunded by branch office accounting if guests still have money left in their accounts.

The requests are sent to branch office accounting for approval. Corporate finance department

staff will send reimbursement instructions to branch office staff, then branch office staff will

wire leftover front money or simply cut a non-endorsable check to guests.

The swing shift hosts should double check all the restaurant reservations, and greet guests in

restaurants. Many times, they will have dinner with guests to build better relationship. In

addition, it is usually swing shift hosts’ responsibilities to distribute show tickets. They will

either hand tickets to guests or leave them at VIP Services Lounge for the guests.

The limo dispatcher usually will call a player’s host or on-duty host 10 minutes before guest’s

arrival. A host will greet the guest at front door and bring them to check in at VIP Services

Lounge. A copy of guest’s itinerary is given to the guest for review. According to a guest’s

requests, the host makes changes to the itinerary. During their stay, guests can always call their

hosts for services and assistances.

For departures, hosts will help guests check out. A host will check customer’s play, review

the room folios and make necessary adjustments, and issue airfare and discount if applicable. If

a guest has front money left in the account, a host will inform them to retrieve the money at the

cage. If a guest has an IOU, a host will inform him or her about the payment amount and

payment term. If a guest’s play does not qualify to cover his or her expenses occurred in the

A Day 36

hotel, a host should explain to him/her the hotel policy and expect payment from the guest.

Casino hosts will try not to downgrade guests’ comp status unless they do not play or have

minimum play for more than one trip.

A win/loss report is produced after settling guests’ accounts at the end of the shift and is e-

mailed out to other hosts. If any of the guests settled is coded by one of the branch offices, a

copy of the report is sent to that branch office staff either by fax or e-mail.

Casino hosts work closely with other departments to provide services. They act as liaison

officers between hotel and guests. Most guests want to feel special and hope someone can take

good care of them during their stay. Casino hosts call bell desk dispatch for newspaper deliveries

or luggage pick-up, housekeeping for cleaning the rooms or robes, sewing kits, or slippers

deliveries, pit managers for rating variances investigation or dispute hands on the table , casino

marketing to put in room reservations or pick-up charges, cabana hosts to get cabanas by the

pool, restaurant reservations for dinner arrangements, limo dispatch for limo reservations, cage

supervisors for wire transfers or airfare, discount, front money commission approval, spa & salon

for massages, facials, manicures & pedicures, and golf line for golf reservations. As courtesy,

flight reservations and transportation requests are made for guests if they request.

Casino hosts usually work in a office in the casino. Whenever a guest needs help, he or she

can find a host in this office called a host station. There is usually one host at the host station all

the time. The rest of the hosts are either looking for potential guests in the casino, working on

reservations in main office, or settling guests’ accounts at the cage or VIP Services Lounge.

Most casino hosts answer their cellular phones 24 hours since some guests only look for their

own hosts when they need any assistance. Most of time, casino hosts can take care of their

guests’ requests by coordinating with other department staff or colleagues over the phone.

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Monthly Routine Work

A casino host usually prints out monthly birthday list at the beginning of the month, and sends

birthday cards to their guests 5 days before their birthday. For some high-end guests, flowers are

also delivered to their home or their offices. In addition, follow up phone calls are made to greet

guests on their birthday. Guests might not promise a future trip right away; however, they

usually will consider the property as one of their choices whenever they decide to come to Las

Vegas.

Special events invitations are also prepared and sent out to potential guests one month before

the event. If they are interested, they usually will contact their hosts to make future trip

reservations. Event tickets are usually free and handed to guests by their casino hosts in person.

Guests usually will play more time or have higher average bets if they receive more comp items

other than room, food, and beverage.

Collection phone calls are also made for payment at the beginning of the month. Guests, who

have good relationship with their hosts, usually have no problem making payments unless they

have financial difficulties. Guests, who cannot clear their balances immediately, usually will

promise a future date to pay, or they might send installment payments. In a few cases, casino

hosts will ask collection department to send the accounts to legal department. The legal

department will send letters to these guests for final notice before suing them.

Premium Guests’ Trip Experience

Gamblers may get angry easily simply because of losing money. This makes customer

service issues more complex in casino environment. The service to high-end guests needs to be

more considerate and personalized. Relationship marketing, especially host relationship

marketing, used in conjunction with the VIP Services and Casino Marketing departments, is

A Day 38

crucial in retaining premium guests. Casino hosts provide personalized and customized services

to different high rollers depending on their habits and personalities.

The “Whales” are the biggest gamblers who bet millions at baccarat and rate star treatment

including jet flights. This elite group numbers around 200 or so in the world. Less than 5% of

the “Whales” are female. Most of them do not want other people to see them playing in the

casinos. Some casinos have private gaming areas specially built for them to offer better security

and privacy.

A casino host tries his best to make his “Whale” feel that his hosts care about what happens to

him. The red carpet treatment begins at home. A luxurious limo shows up at their front door to

take him to the air charter. His host greets him at the air charter and accompanies him to Las

Vegas. After arriving Las Vegas, a hotel limo arrives to ferry the guest back to hotel. VIP

Services Representatives greet the guest at the front door and hand him the room key. A bellman

will send his luggage to his posh suite. When he arrives to his room with his host, butlers

welcome him at the door with respect and are ready to unpack his luggage and take any requests.

When he is ready to come down to play, his host will show him a table, which is reserved for

him. When he is tired or hungry, the butler will serve him in his private dining room. When he

feels like golfing, his host will take him to play wherever he requests. When he wants to see any

shows, his host will try to get the best seats for him. Wherever he wants to dine, his hosts will

also get the table with best view for him. When he quits playing, his settlement is ready for him

to sign. When he is ready to leave, an air charter waits for him at Executive Terminal. Of

course, a stretch limousine will take him back to his residence.

Mr. Chen is a frequent Chinese player from Hong Kong. His credit limit is usually $3

Million, and he can wager $150,000 a hand. Since his family lives in Vancouver, he usually

A Day 39

visits a mega-resort around 4 days in Las Vegas before going back to Hong Kong. His trip

experiences can be described as following:

The first day at 12PM

Mr. Chen takes the limo from home to air charter terminal in Vancouver. His host greets him on

his jet. The jet takes off fewer than 30 minutes after his arrival.

3PM

The jet lands at Eagle Executive Terminal in Las Vegas. A stretch hotel limousine takes Mr.

Chen and his host back to hotel.

3:20PM

The hotel limousine drops off Mr. Chen and his host at the tunnel, a private entrance to Villa. A

VIP Services Representative and other on-duty casino hosts bow to Mr. Chen when he gets out

of the limousine. The VIP Services Representative hands Mr. Chen his room key and

accompanies him to his beautiful and luxurious three-bedroom villa. When Mr. Chen enters his

room, one of his personal butlers is ready to serve him his favorite Chateau Margaux 82’ with

exotic caviar. The other butler unpacks his luggage in the bedroom.

5PM

A welcome party is held in Mr. Chen’s room with great food, great wine, and great live band.

His hosts and colleagues join the party to entertain Mr. Chen.

7:30PM

Mr. Chen watches a show accompanied by his casino host in the hotel.

9:30PM

Mr. Chen is guided to his reserved Baccarat game in Salon Prive. His host and a personal butler

are standing nearby to watch him playing. His favorite drink at table is hot ginseng tea.

A Day 40

The second day at 12:30AM

Mr. Chen enjoys his snack in private dining room in Baccarat Room. He usually has abalone

congees with condiments, hot soy milk, and birdnest soup as dessert.

1:30AM

Mr. Chen returns to table to play. He asks butlers to prepare more hot ginseng tea for him.

3:30AM

Mr. Chen goes back to his room accompanied by his butlers.

10:00AM

Mr.Chen is wakened up by his butler, and his breakfast is ready in the dining room in his villa.

11:00AM

Mr. Chen goes golfing with his casino host. He plans to have lunch at the golf course.

4:00PM

Mr. Chen returns to the hotel and takes a nap in his room.

7:00PM

Mr. Chen dines with his host at Japanese restaurant. Of course, his table has the best view.

8:30PM

Mr. Chen returns to his private tables to play. His host and butlers are nearby to service him.

10:30PM

Mr. Chen watches KA, the newest show in town with his host. They sit at section 103, the best

seats in the theater.

The third day at 12:30AM

Mr. Chen plays Baccarat again. His host and butlers are behind him. He requests a bottle of

Lafite Rothschild 86’ this time.

A Day 41

3:00AM

Mr. Chen is tired and asks his casino host to call a masseur for him. He enjoys massage in his

room. It is free to him, since casino pays for the massage.

9AM

Mr. Chen gives his shopping list to his host. The gifts are for his lovely wife and two children.

His host arranges a limo runner to go shopping for Mr. Tsui. The runner will leave the

merchandises in his room.

10:00AM

Mr. Chen plays more golf with his host at one of the best courses in town. As usual, he has

lunch at the golf course.

3PM

Mr. Chen goes to in-door shooting field with his host after golfing.

5PM

Mr. Chen watches TV in his room and enjoys red wine with a cheese platter.

6PM

Mr. Chen returns to table to continue his play. He wants to finish 12 shoes before going home.

9PM

Mr. Chen’s host takes him to Chinese restaurant to have late dinner. Shark fin soup and braised

abalone are his favorite. Mr. Chen decides to go to a nightclub for relaxation after dinner.

11PM

Mr. Chen has a great time in the hotel’s nightclub.

The fourth day at 2AM

A Day 42

Mr. Chen tells his host that he wants to go home around 11am next day. He is tired and goes

back to his room to sleep. His host makes his flight reservations from Los Angeles to Hong

Kong and requests an air charter with aviation department from Las Vegas to Los Angeles.

10:00AM

Mr. Chen enjoys his breakfast in his villa while his personal butler is packing for him.

10:30AM

Mr. Chen settles his account with his casino host at the cage. He wins this time, and he tells his

host to wire his winning money to his account in Hong Kong. Mr. Tsui is very happy since he

also receives airfare from the casino. His casino host is busy preparing paperwork for him to

sign and instructing the cage to wire his money.

10:45AM

Mr. Chen and his host take the hotel limousine to air charter terminal.

11:00AM

The private jet takes off and heads for Los Angeles. His host accompanies him to Los Angeles.

12:00PM

A stretch limo is waiting at Garret Aviation to take Mr. Chen to Tom Bradley International

Airport. Mr. Chen will take Cathay Airlines back to Hong Kong. His host says “Goodbye” to

him after helping him to check-in. Mr. Chen is satisfied with the casino, especially he wins

money this time. He promises his host he will come back soon.

Conclusions

A casino host’s job is service-oriented. It requires a lot of patience and attention to details.

This paper describes a casino host’s job duties and their responsibilities. It shows people who

are interested in this filed highlights of a day in the life of a casino host.

A Day 43

A casino host works with other department closely to maximize his or her guests’ trip

experience. Without the help of other service department’s staff, it is very hard for a casino host

to fulfill his or her job duties. A casino host also cooperates with junket reps to set up credit

limits and provide services to these clients brought in by junket reps. Casinos encourage their

casino hosts to get to know junket rep’s players in case companies discontinue their junket reps’

contracts.

Since a casino host has a lot of power in giving out comps, airfares, front money commissions

and discount, casinos are looking for ethical employees to prevent company loss and employee

frauds. It is also very important for casino employees to abide by Regulation 6A against money

laundry and criminal activities.

The competition among casinos is fierce in getting high-end guests. Casino hosts should try

to make friends with them, get to know them, and polish their service skills. The more a casino

can offer and the better services casino hosts can provide to “Whales”, the better a casino will

retain these high-end guests.

A Day 44

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